- This topic has 3 replies, 2 voices, and was last updated 5 years ago by
.
-
Posts
-
Hi,
In the Mar/Jun 2019 exam paper question 1 Carbise, there was a cumulative exchange gain present in the OCI but when the subsidiary was disposed off only the parent’s share of exchange gain of $76.5 was recycled to P&L. My question is where the remaining cumulative exchange gain will be reported??Cumulative Exchange including the current Year gain on G/W and Net Assets: $95.7
Parent’s share of exchange gain (95.7 x 80%) $76.5
Remaining Cumulative exchange gain (95.7 – 76.5) $19.2The cumulative exchange reserve in the group accounts would only include the parent share of exchange differences. It is these that are recycled. No adjustment to the NCI.
OK i also have thought of that but why then most of the SBR study texts dont include this point these books only tells that the cumulative gains and losses are recycled to P&L when the foreign sub is disposed off without telling the above point which gives the impression that whole gain and loss is recycled including the NCI too?
- The topic ‘Foreign Subsidiary’ is closed to new replies.